http://www.nytimes.com/2008/04/21/opinion/21krugman.html?_r=1&hp&oref=slogin
[Krugman gives three reasons for the commodity price explosiong, and
cites two as being likely. I suspect that since at least some of it
is speculator-driven, that all three are in play]
Running Out of Planet to Exploit
By PAUL KRUGMAN
Published: April 21, 2008
Nine years ago The Economist ran a big story on oil, which was then
selling for $10 a barrel. The magazine warned that this might not
last. Instead, it suggested, oil might well fall to $5 a barrel.
In any case, The Economist asserted, the world faced the prospect of
cheap, plentiful oil for the foreseeable future.
Last week, oil hit $117.
Its not just oil that has defied the complacency of a few years back.
Food prices have also soared, as have the prices of basic metals. And
the global surge in commodity prices is reviving a question we havent
heard much since the 1970s: Will limited supplies of natural resources
pose an obstacle to future world economic growth?